Pessimistic stock comment from the market's star

According to JPMorgan Strategist Marko Kolanovic, the disruption of the disinflation process and increasing geopolitical risks may reduce the appetite for stocks in 2024. According to JPMorgan Chase & Co. Chief Market Strategist Marko Kolanovic, the optimism that drove stocks higher last year due to expectations of disinflation and subsequent monetary easing may be difficult to maintain in 2024 due to increasing geopolitical risks. Kolanovic said that the increase in risk appetite in November and December was due to the expectations that a “perfect disinflation thesis” would pave the way for aggressive interest rate cuts, and that investors focused on performance rather than safety. Stating that geopolitical tensions could cause inflation to accelerate both through risk aversion and increasing transportation costs, the strategist predicted that last year’s optimism would be disrupted due to the pause in the disinflation process, stocks being seen to be in the overbought region and increasing geopolitical risks.